NYC Multifamily Operator Influenced By Drug Money?

Rubin Schron, a major multifamily operator in New York, and his co-conspirators, allegedly accepted a $50 million kickback from a pharmaceutical vendor that serves nursing homes controlled by one of the men.

The Justice Department on Wednesday filed a complaint against real estate investor Rubin Schron and attorney Leonard Grunstein, a partner at Troutman Sanders. Murray Forman, who is the sole employee of an investment bank owned by Grunstein, was also named in the filing. The complaint alleges the trio orchestrated a scheme to receive a $50 million payment from Omnicare Inc., the nation's largest nursing home pharmacy, so it could continue to provide services to Mariner Health Care Inc. Schron purchased Mariner for about $1 billion in 2004, according to the complaint.

Earlier this week, it was reported that Schron and other owners of the Woolworth Building, including noted real estate investor Steve Witkoff, are considering selling a 51% stake in the building to the Sorgente Group, an Italian firm that also owns a stake in New York's Flatiron Building. The Woolworth Building's breaktaking lobby is pictured here.